November 27th, 2017 by Adam Armstrong
HPE Reports 4Q17 & Full Year Earnings
Hewlett Packard Enterprise (HPE) announced its fourth quarter earnings for its fiscal 2017 ending on October 31, 2017. This announcement came the same day as their CEO, Meg Whitman, announced that she is stepping down. The two announcements drove the stock price down over the weekend but it has crept back up a bit since.
Looking at the numbers for the quarter, HPE is reporting net revenue of $7.7 billion up 5% from this time last year and up from $7.5 billion last quarter. The company is reporting a GAAP diluted earnings per share (EPS) of $0.32 up form $0.18 EPS this time last year and $0.10 EPS from the previous quarter. Non-GAAP diluted EPS $0.31 up above the previous outlook of $0.26-$0.30.
The numbers for the year are being reported as a net revenue of $28.9 billion down from $30.3 billion for 2016. The company’s GAAP diluted EPS for the year was $0.21 and non-GAAP was $1.41. HPE is also reporting that it returned $3 billion to shareholders in the form of share repurchases and dividends for the fiscal year.
The numbers overall look pretty good, however, for the fourth quarter, the company reported that its enterprise group revenue was flat. Sever revenue was down 5%. On the flip side, networking revenue was up 21% and technology services were up 2%. The seemingly abrupt announcement of the CEO stepping down also jarred the price of the stock. Whitman has been the CEO since September 22, 2011. As recently as July, Whitman said, “We have a lot of work still to do at HPE and I am not going anywhere."* So her announcing that she is stepping down is a bit of a shock
Looking forward, HPE is expecting estimated GAAP diluted net EPS of $0.01-$0.05 and non-GAAP to be $0.20-$0.24.